Some Problems in the Implementation of the Business Judgment Rule Principles to the Directors of State-Owned Enterprises in Indonesia

DOI

10.2991/icglow-19.2019.59How to use a DOI?

Keywords

Business Judgment Rule; Directors; State-Owned Enterprises; Business Decisions; Indonesia

Abstract

Principles of Business Judgment Rule is not a principle that has existed for years. This principle is like two sides of a coin, on the one hand it is used to ensure directors work according to the corridor, on the other hand it can be used to protect moral hazard of the company's directors. In Indonesia this principle is often present in the trial of corruption cases for the benefit of the second side. Although in fact there has been a harmonization of principles in the management of the Business Rule in Indonesia, the Company has set out in Regulation of Legislation in Indonesia. But in its application is still not optimal. Based on several corruption cases that have occurred in Indonesia, the Board of Directors has not been able to protect them. The company law and BUMN are still limited to accommodating this principle, not yet explaining in detail what conditions and how this principle can be applied.The results of this study indicate that there are already regulating regulations related to the principles of the business judgment rule, but in the regulation it has not been implemented, because many who do not know the directors of state-owned enterprises can be protected by the principle of business judgment rules, and in those regulations not specific set criteria to meet the principles of the business judgment rule.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - B. Sugeng Rukmono
AU  - Soehartono
PY  - 2019/10
DA  - 2019/10
TI  - Some Problems in the Implementation of the Business Judgment Rule Principles to the Directors of State-Owned Enterprises in Indonesia
BT  - Proceedings of the 3rd International Conference on Globalization of Law and Local Wisdom (ICGLOW 2019)
PB  - Atlantis Press
SP  - 233
EP  - 237
SN  - 2352-5398
UR  - https://doi.org/10.2991/icglow-19.2019.59
DO  - 10.2991/icglow-19.2019.59
ID  - Rukmono2019/10
ER  -